This paper presents some more evidence on the empirical regularity known as `45-degree rule'. We estimate income and price elasticities of trade for 21 countries in a cointegration framework. More specifically, we adopt the autoregressive distributed lag (ARDL) approach and the DOLS procedure to...

This paper provides new evidence on the stochastic behaviour of the EPU (Economic Policy Uncertainty (EPU) index constructed by Baker et al. (2016) in six of the biggest economies (Canada, France, Japan, US, Ireland, and Sweden) over the period from January 1985 to October 2019. In particular,...

This paper examines the asymmetric impact of economic policy uncertainty (EPU) and oil price uncertainty (OPU) on inflation by using a Nonlinear ARDL (NARDL) model, which is compared to a benchmark linear ARDL one. Using monthly data from the 1990s until August 2022 for a number of developed and...